Press Release
In conjunction with the drop down, SMLP has increased its revolving credit facility from
The accelerated drop down of all of the operating assets from Summit Investments, the deferred payment structure, and the attractive all-in drop down multiple work together in this challenging commodity and capital markets environment to demonstrate the substantial and ongoing support of
I would also like to thank our bank group for their continued support and confidence in the SMLP business. We increased our revolving credit facility by
2016 Financial Guidance
Pro forma for the 2016 Drop Down, SMLP is providing financial guidance for 2016 with adjusted EBITDA expected to range from
Given the challenging commodity price environment, coupled with the current volatility of the capital markets, SMLP will take a measured approach regarding the pace of its distribution per unit growth rate in 2016. In the near-term, SMLP intends to focus on building distribution coverage and strengthening its balance sheet. We expect SMLP's distribution coverage ratio for 2016 to range from 1.10x to 1.20x.
Overview of Drop Down Assets
- The Niobrara G&P system is currently in service with 91 miles of low-pressure and high-pressure gathering pipeline and a cryogenic natural gas processing plant with processing capacity of 15 MMcf/d; processing capacity is currently being expanded to 20 MMcf/d pursuant to a long-term, fee-based gathering and processing agreement with
EOG Resources, Inc. Volume throughput on the Niobrara G&P system averaged 7 MMcf/d in the fourth quarter of 2015. Residue gas is delivered to theColorado Interstate Gas pipeline and processed NGLs are delivered to the Overland Pass Pipeline. - The Blacktail gathering system is currently in service with 53 miles of crude oil gathering pipeline and 96 miles of produced water gathering pipeline. The Blacktail system is located in
Williams County, North Dakota and has 40 Mbbls/d of crude oil throughput capacity and 30 Mbbls/d of produced water throughput capacity. All gathering services on the Blacktail system are provided pursuant to a long-term, fee-based gathering agreement with an independent producer that is primarily targeting crude oil production from the Bakken and Three Forks shale formations. Crude oil on the Blacktail system is currently delivered to the COLT rail terminal inEpping, North Dakota and produced water is delivered to third-party disposal wells located throughoutWilliams County, North Dakota . In the fourth quarter of 2015, Blacktail gathered an average of 4 Mbbl/d of crude oil and 7 Mbbl/d of produced water.
Transaction Structure Overview
SMLP has entered into a Contribution Agreement with
The consideration that SMLP pays for the Drop Down Assets will consist of (i) an initial
The Deferred Payment will be equal to: (a) six-and-one-half (6.5) multiplied by the average adjusted EBITDA of the Drop Down Assets for 2018 and 2019; less (b) the Initial Payment; less (c) all capital expenditures incurred for the Drop Down Assets between the Initial Close and December 31, 2019; plus (d) all adjusted EBITDA from the Drop Down Assets between the Initial Close and December 31, 2019.
Management estimates that the Deferred Payment will be approximately
SMLP expects to incur approximately
The terms of the Contribution Agreement were approved by the conflicts committee of the board of directors of our general partner, which committee consists entirely of independent directors, and by the entire board of SMLP's general partner. The conflicts committee engaged
Fourth Quarter and Full Year 2015 Financial Results
SMLP announced today its financial and operating results for the three months and year ended
For the year ended
Over the last several months, we have received a great deal of inquiry regarding our counterparty exposure. While we believe that we have a strong and high-quality contract portfolio, it is our role as a third-party gatherer that is the best mitigant to any counterparty exposure that we have. The vast majority of SMLP's gathering assets are strategically positioned at the beginning of the midstream value chain, meaning that the majority of our infrastructure is connected directly to our customers' wellheads and pad sites. Our gathering systems are typically the first third-party infrastructure through which our customers' commodities flow and in many cases, the only way for our customers to get their production to market. As a result, we believe that we are a critical service provider that cannot be easily substituted and we expect that our customers will continue to perform, as we continue to perform, pursuant to our long-term contracts, in order to access downstream markets."
Fourth Quarter 2015 Segment Results
The Mountaineer Midstream gathering system provides SMLP's midstream services for the
Segment adjusted EBITDA totaled
Lower volume throughput relative to the fourth quarter of 2014 resulted from Antero slowing the pace of its well completion activity on wells located upstream of the Mountaineer Midstream system throughout 2015. Antero continues to defer completion activities on its
Our
Segment G&A expenses decreased
The Bison Midstream and the Polar and
Segment adjusted EBITDA totaled
Adjusted EBITDA for the
The DFW Midstream gathering system provides SMLP's midstream services for the
Segment adjusted EBITDA totaled
Customers on the DFW Midstream system have another 15 previously identified drilled and uncompleted wells ("DUCs") that are in various stages of the completion process; we expect these 15 DUCs will be producing by the end of the second quarter of 2016. In addition, one producer recently moved a drilling rig back into our service area to drill six new wells which we expect to begin production in the second half of 2016.
Segment adjusted EBITDA for the fourth quarter of 2015 benefitted from a
The Grand River gathering system provides SMLP's midstream services for the
Segment adjusted EBITDA totaled
Segment adjusted EBITDA for the fourth quarter of 2015 also benefitted from the aforementioned decision to discontinue allocating certain corporate overhead expenses beginning in the first quarter of 2015. Segment G&A expenses decreased
The majority of the gathering agreements for the
The following table presents average daily throughput by reportable segment:
Three months ended |
Twelve months ended |
|||||||||||
2015 |
2014 |
2015 |
2014 |
|||||||||
Average daily throughput (MMcf/d): |
||||||||||||
Marcellus Shale |
366 |
459 |
477 |
382 |
||||||||
Williston Basin |
19 |
22 |
18 |
18 |
||||||||
Barnett Shale |
325 |
372 |
352 |
358 |
||||||||
Piceance Basin |
598 |
638 |
602 |
660 |
||||||||
Aggregate average daily throughput |
1,308 |
1,491 |
1,449 |
1,418 |
||||||||
Average daily throughput (Mbbl/d): |
||||||||||||
Williston Basin |
65.9 |
47.1 |
55.0 |
33.6 |
||||||||
Average daily throughput |
65.9 |
47.1 |
55.0 |
33.6 |
Fourth Quarter 2015 Goodwill Impairments
In connection with (i) increased market volatility, (ii) the decrease in market values of comparable companies, (iii) the continued trend of falling commodity prices and (iv) the finalization of our annual financial and operating plans which took into account changes resulting from ongoing contract negotiations and expected levels of drilling activity, we concluded that a triggering event occurred during the fourth quarter of 2015 requiring that we test the goodwill associated with our
MVC Shortfall Payments
SMLP billed its customers
For the fourth quarter of 2015, SMLP recognized
The net impact of SMLP's MVC shortfall payment mechanisms increased adjusted EBITDA by
Three months ended December 31, 2015 |
||||||||||||||||
MVC billings |
Gathering revenue |
Adjustments to MVC shortfall payments |
Net impact to adjusted EBITDA |
|||||||||||||
(In thousands) |
||||||||||||||||
Net change in deferred revenue related to MVC shortfall payments: |
||||||||||||||||
Marcellus Shale |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||||
Williston Basin |
11,897 |
— |
11,897 |
11,897 |
||||||||||||
Barnett Shale |
— |
— |
— |
— |
||||||||||||
Piceance Basin |
3,999 |
2,743 |
1,256 |
3,999 |
||||||||||||
Total net change |
$ |
15,896 |
$ |
2,743 |
$ |
13,153 |
$ |
15,896 |
||||||||
MVC shortfall payment adjustments: |
||||||||||||||||
Marcellus Shale |
$ |
852 |
$ |
852 |
$ |
— |
$ |
852 |
||||||||
Williston Basin |
— |
— |
(8,997) |
(8,997) |
||||||||||||
Barnett Shale |
624 |
624 |
(267) |
357 |
||||||||||||
Piceance Basin |
24,146 |
24,146 |
(17,705) |
6,441 |
||||||||||||
Total MVC shortfall payment adjustments |
$ |
25,622 |
$ |
25,622 |
$ |
(26,968) |
$ |
(1,347) |
||||||||
Total |
$ |
41,518 |
$ |
28,365 |
$ |
(13,816) |
$ |
14,549 |
||||||||
Twelve months ended December 31, 2015 |
||||||||||||||||
MVC billings |
Gathering revenue |
Adjustments to MVC shortfall payments |
Net impact to adjusted EBITDA |
|||||||||||||
(In thousands) |
||||||||||||||||
Net change in deferred revenue related to MVC shortfall payments: |
||||||||||||||||
Marcellus Shale |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||||
Williston Basin |
11,897 |
27 |
11,870 |
11,897 |
||||||||||||
Barnett Shale |
677 |
2,377 |
(1,700) |
677 |
||||||||||||
Piceance Basin |
15,508 |
37,131 |
(21,623) |
15,508 |
||||||||||||
Total net change |
$ |
28,082 |
$ |
39,535 |
$ |
(11,453) |
$ |
28,082 |
||||||||
MVC shortfall payment adjustments: |
||||||||||||||||
Marcellus Shale |
$ |
3,237 |
$ |
3,237 |
$ |
— |
$ |
3,237 |
||||||||
Williston Basin |
— |
— |
— |
— |
||||||||||||
Barnett Shale |
1,142 |
1,142 |
(482) |
660 |
||||||||||||
Piceance Basin |
25,704 |
25,704 |
33 |
25,737 |
||||||||||||
Total MVC shortfall payment adjustments |
$ |
30,083 |
$ |
30,083 |
$ |
(449) |
$ |
29,634 |
||||||||
Total |
$ |
58,165 |
$ |
69,618 |
$ |
(11,902) |
$ |
57,716 |
Capital Expenditures
For the three months ended
Capital & Liquidity
As of
SMLP is amending and upsizing its revolving credit facility in connection with the 2016 Drop Down. This amendment and
Pro forma for the closing of the revolving credit facility amendment and increased commitments, we expect to have available liquidity under the revolving credit facility of approximately
Quarterly Distribution
On
Recent Conversion of SMLP Subordinated Units to Common Units
SMLP has complied with the required financial tests under its partnership agreement and accordingly, on
Fourth Quarter 2015 Earnings Call Information
SMLP will host a conference call at
A replay of the conference call will be available until
Upcoming Investor Conferences
SMLP will participate in the
Use of Non-GAAP Financial Measures
We report financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). We also present EBITDA, adjusted EBITDA, distributable cash flow and adjusted distributable cash flow. We define EBITDA as net income, plus interest expense, income tax expense, and depreciation and amortization, less interest income and income tax benefit. We define adjusted EBITDA as EBITDA plus adjustments related to MVC shortfall payments, impairments and other noncash expenses or losses, less other noncash income or gains. We define distributable cash flow as adjusted EBITDA plus cash interest received, less cash interest paid, senior notes interest adjustment, cash taxes paid and maintenance capital expenditures. We define adjusted distributable cash flow as distributable cash flow plus or minus other unusual or non-recurring expenses or income. Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating our financial performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.
Comparability Related to Drop Down Transactions
With respect to drop down transactions, SMLP's historical results of operations may not be comparable to its future results of operations. In
About
SMLP is a growth-oriented limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental
About Summit Investments
As of
Forward-Looking Statements
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management's control) that may cause SMLP's actual results in future periods to differ materially from anticipated or projected results. Forward-looking statements in this press release include statements regarding the necessity of accessing the debt and equity capital markets, financial guidance with respect to distribution coverage ratios, adjusted EBITDA, expected commodity prices and distributable cash flow, and the expected amount of the Deferred Payment. An extensive list of specific material risks and uncertainties affecting SMLP is contained in its 2014 Annual Report on Form 10-K as updated and superseded by our Current Report on Form 8-K filed with the
SUMMIT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
December 31, |
|||||||
2015 |
2014 |
||||||
(In thousands) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
19,411 |
$ |
26,504 |
|||
Accounts receivable, net |
84,022 |
89,201 |
|||||
Other current assets |
3,210 |
3,517 |
|||||
Total current assets |
106,643 |
119,222 |
|||||
Property, plant and equipment, net |
1,463,802 |
1,414,350 |
|||||
Intangible assets, net |
438,093 |
477,734 |
|||||
Goodwill |
16,211 |
265,062 |
|||||
Other noncurrent assets |
15,782 |
17,353 |
|||||
Total assets |
$ |
2,040,531 |
$ |
2,293,721 |
|||
Liabilities and Partners' Capital |
|||||||
Current liabilities: |
|||||||
Trade accounts payable |
$ |
18,971 |
$ |
24,855 |
|||
Due to affiliate |
1,149 |
2,711 |
|||||
Deferred revenue |
677 |
2,377 |
|||||
Ad valorem taxes payable |
9,890 |
9,118 |
|||||
Accrued interest |
17,483 |
18,858 |
|||||
Other current liabilities |
11,464 |
13,550 |
|||||
Total current liabilities |
59,634 |
71,469 |
|||||
Long-term debt |
944,000 |
808,000 |
|||||
Deferred revenue |
45,486 |
55,239 |
|||||
Other noncurrent liabilities |
7,169 |
7,292 |
|||||
Total liabilities |
1,056,289 |
942,000 |
|||||
Common limited partner capital |
744,977 |
649,060 |
|||||
Subordinated limited partner capital |
213,631 |
293,153 |
|||||
General partner interests |
25,634 |
24,676 |
|||||
Summit Investments' equity in contributed subsidiaries |
— |
384,832 |
|||||
Total partners' capital |
984,242 |
1,351,721 |
|||||
Total liabilities and partners' capital |
$ |
2,040,531 |
$ |
2,293,721 |
SUMMIT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
Three months ended |
Year ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
(In thousands, except per-unit amounts) |
|||||||||||||||
Revenues: |
|||||||||||||||
Gathering services and related fees |
$ |
88,744 |
$ |
81,586 |
$ |
310,829 |
$ |
255,211 |
|||||||
Natural gas, NGLs and condensate sales |
8,789 |
20,117 |
42,079 |
97,094 |
|||||||||||
Other revenues |
5,068 |
6,526 |
18,411 |
20,398 |
|||||||||||
Total revenues |
102,601 |
108,229 |
371,319 |
372,703 |
|||||||||||
Costs and expenses: |
|||||||||||||||
Cost of natural gas and NGLs |
6,424 |
15,775 |
31,398 |
72,415 |
|||||||||||
Operation and maintenance |
21,566 |
22,459 |
87,285 |
88,927 |
|||||||||||
General and administrative |
8,798 |
10,142 |
36,544 |
38,269 |
|||||||||||
Transaction costs |
76 |
55 |
790 |
730 |
|||||||||||
Depreciation and amortization |
24,344 |
23,331 |
96,189 |
87,349 |
|||||||||||
Loss (gain) on asset sales, net |
42 |
436 |
(172) |
442 |
|||||||||||
Long-lived asset impairment |
1,609 |
5,505 |
9,305 |
5,505 |
|||||||||||
Goodwill impairment |
248,851 |
54,199 |
248,851 |
54,199 |
|||||||||||
Total costs and expenses |
311,710 |
131,902 |
510,190 |
347,836 |
|||||||||||
Other income |
— |
1,186 |
2 |
1,189 |
|||||||||||
Interest expense |
(12,283) |
(11,655) |
(48,616) |
(40,159) |
|||||||||||
Loss before income taxes |
(221,392) |
(34,142) |
(187,485) |
(14,103) |
|||||||||||
Income tax benefit (expense) |
924 |
24 |
676 |
(631) |
|||||||||||
Net loss |
$ |
(220,468) |
$ |
(34,118) |
$ |
(186,809) |
$ |
(14,734) |
|||||||
Less net income attributable to Summit Investments |
— |
3,568 |
5,403 |
9,258 |
|||||||||||
Net loss attributable to SMLP |
(220,468) |
(37,686) |
(192,212) |
(23,992) |
|||||||||||
Less net loss attributable to general partner, including IDRs |
(2,469) |
689 |
3,398 |
3,125 |
|||||||||||
Net loss attributable to limited partners |
$ |
(217,999) |
$ |
(38,375) |
$ |
(195,610) |
$ |
(27,117) |
|||||||
Loss per limited partner unit: |
|||||||||||||||
Common unit – basic |
$ |
(3.28) |
$ |
(0.65) |
$ |
(3.20) |
$ |
(0.49) |
|||||||
Common unit – diluted |
$ |
(3.28) |
$ |
(0.65) |
$ |
(3.20) |
$ |
(0.49) |
|||||||
Subordinated unit – basic and diluted |
$ |
(3.28) |
$ |
(0.65) |
$ |
(2.88) |
$ |
(0.44) |
|||||||
Weighted-average limited partner units outstanding: |
|||||||||||||||
Common units – basic |
42,063 |
34,425 |
39,217 |
33,311 |
|||||||||||
Common units – diluted |
42,063 |
34,425 |
39,217 |
33,311 |
|||||||||||
Subordinated units – basic and diluted |
24,410 |
24,410 |
24,410 |
24,410 |
SUMMIT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES OTHER FINANCIAL AND OPERATING DATA |
|||||||||||||||
Three months ended |
Year ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
(Dollars in thousands) |
|||||||||||||||
Other financial data: |
|||||||||||||||
EBITDA (1) |
$ |
(184,627) |
$ |
1,094 |
$ |
(41,896) |
$ |
114,345 |
|||||||
Adjusted EBITDA (1) |
$ |
53,279 |
$ |
54,086 |
$ |
210,445 |
$ |
204,907 |
|||||||
Capital expenditures |
$ |
28,817 |
$ |
66,115 |
$ |
118,107 |
$ |
220,820 |
|||||||
Acquisitions of gathering systems (2) |
$ |
— |
$ |
— |
$ |
288,618 |
$ |
315,872 |
|||||||
Distributable cash flow (1) |
$ |
38,265 |
$ |
40,844 |
$ |
153,373 |
$ |
150,318 |
|||||||
Adjusted distributable cash flow |
$ |
38,341 |
$ |
40,376 |
$ |
154,266 |
$ |
151,418 |
|||||||
Distributions declared |
$ |
40,977 |
$ |
35,093 |
$ |
157,960 |
$ |
130,951 |
|||||||
Distribution coverage ratio (3) |
0.94x |
* |
* |
* |
|||||||||||
Operating data: |
|||||||||||||||
Aggregate average throughput – gas (MMcf/d) |
1,308 |
1,491 |
1,449 |
1,418 |
|||||||||||
Average throughput – liquids (Mbbl/d) |
65.9 |
47.1 |
55.0 |
33.6 |
__________ |
|
* Not considered meaningful |
|
(1) Includes transaction costs. These unusual expenses are settled in cash. |
|
(2) Reflects consideration paid, including working capital and capital expenditure adjustments paid (received), to fund acquisitions and/or drop downs. |
|
(3) Distribution coverage ratio calculation for the three months ended December 31, 2015 is based on distributions in respect of the fourth quarter of 2015. Represents the ratio of adjusted distributable cash flow to distributions declared. Due to the common control nature of drop down transactions and to the extent that common control existed during a given reporting period, quarter-to-date and year-to-date results are reported on an as-if pooled basis with no adjustment to distributions declared. As such, we only present the current quarter's distribution coverage ratio when a drop down, and its funding, impacts adjusted distributable cash flow and distributions declared. |
SUMMIT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES UNAUDITED RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
Three months ended |
Year ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
(Dollars in thousands) |
|||||||||||||||
Reconciliations of Net Loss to EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Distributable Cash Flow: |
|||||||||||||||
Net loss |
$ |
(220,468) |
$ |
(34,118) |
$ |
(186,809) |
$ |
(14,734) |
|||||||
Add: |
|||||||||||||||
Interest expense |
12,283 |
11,655 |
48,616 |
40,159 |
|||||||||||
Income tax expense |
— |
— |
— |
631 |
|||||||||||
Depreciation and amortization (1) |
24,482 |
23,582 |
96,975 |
88,293 |
|||||||||||
Less: |
|||||||||||||||
Interest income |
— |
1 |
2 |
4 |
|||||||||||
Income tax benefit |
924 |
24 |
676 |
— |
|||||||||||
EBITDA |
$ |
(184,627) |
$ |
1,094 |
$ |
(41,896) |
$ |
114,345 |
|||||||
Add: |
|||||||||||||||
Adjustments related to MVC shortfall payments (2) |
(13,816) |
(7,245) |
(11,902) |
26,565 |
|||||||||||
Unit-based compensation |
1,220 |
1,282 |
6,259 |
5,036 |
|||||||||||
Loss on asset sales |
42 |
436 |
42 |
442 |
|||||||||||
Long-lived asset impairment |
1,609 |
5,505 |
9,305 |
5,505 |
|||||||||||
Goodwill impairment |
248,851 |
54,199 |
248,851 |
54,199 |
|||||||||||
Less: |
|||||||||||||||
Gain on asset sales |
— |
— |
214 |
— |
|||||||||||
Impact of purchase price adjustment |
— |
1,185 |
— |
1,185 |
|||||||||||
Adjusted EBITDA |
$ |
53,279 |
$ |
54,086 |
$ |
210,445 |
$ |
204,907 |
|||||||
Add cash interest received |
— |
1 |
2 |
4 |
|||||||||||
Less: |
|||||||||||||||
Cash interest paid |
2,513 |
1,745 |
48,947 |
31,524 |
|||||||||||
Senior notes interest adjustment (3) |
9,750 |
9,750 |
(1,421) |
6,733 |
|||||||||||
Maintenance capital expenditures |
2,751 |
1,748 |
9,548 |
16,336 |
|||||||||||
Distributable cash flow |
$ |
38,265 |
$ |
40,844 |
$ |
153,373 |
$ |
150,318 |
|||||||
Add: |
|||||||||||||||
Transaction costs |
76 |
55 |
790 |
730 |
|||||||||||
Regulatory compliance costs (4) |
— |
898 |
103 |
1,536 |
|||||||||||
Less: |
|||||||||||||||
Ad valorem tax adjustment (5) |
— |
255 |
— |
— |
|||||||||||
Write off of working capital adjustment (6) |
— |
1,166 |
— |
1,166 |
|||||||||||
Adjusted distributable cash flow |
$ |
38,341 |
$ |
40,376 |
$ |
154,266 |
$ |
151,418 |
|||||||
Distributions declared |
$ |
40,977 |
$ |
35,093 |
$ |
157,960 |
$ |
130,951 |
|||||||
Distribution coverage ratio (7) |
0.94x |
* |
* |
* |
__________ |
|
* Not considered meaningful |
|
(1) Includes amortization of favorable and unfavorable gas gathering contracts reported in other revenues. |
|
(2) Adjustments related to MVC shortfall payments account for (i) the net increases or decreases in deferred revenue for MVC shortfall payments and (ii) our inclusion of expected annual MVC shortfall payments. |
|
(3) Senior notes interest adjustment represents the net of interest expense accrued and paid during the period. Interest on the $300.0 million 5.5% senior notes is paid in cash semi-annually in arrears on February 15 and August 15 until maturity in August 2022. Interest on the $300.0 million 7.5% senior notes is paid in cash semi-annually in arrears on January 1 and July 1 until maturity in July 2021. |
|
(4) We incurred expenses associated with our adoption of the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013"). These first-year COSO 2013 expenses are not expected to be incurred subsequent to completion of the 2014 integrated audit. |
|
(5) In the fourth quarter of 2014, we adjusted our estimate for ad valorem property taxes for 2014. This adjustment resulted in a reduction to property tax expense of $0.3 million for the three months ended December 31, 2014. |
|
(6) During the fourth quarter of 2014, we identified and wrote off the balance associated with a working capital adjustment received after the purchase accounting measurement period closed for Summit Investments' acquisition of Red Rock Gathering. This write off was recognized as a $1.2 million increase to gathering services and other fees. |
|
(7) Distribution coverage ratio calculation for the three months ended December 31, 2015 is based on distributions in respect of the fourth quarter of 2015. Represents the ratio of adjusted distributable cash flow to distributions declared. Due to the common control nature of drop down transactions and to the extent that common control existed during a given reporting period, quarter-to-date and year-to-date results are reported on an as-if pooled basis with no adjustment to distributions declared. As such, we only present the current quarter's distribution coverage ratio when a drop down, and its funding, impacts adjusted distributable cash flow and distributions declared. |
SUMMIT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES UNAUDITED RECONCILIATION OF REPORTABLE SEGMENT ADJUSTED EBITDA TO ADJUSTED EBITDA |
|||||||||||||||
Three months ended |
Year ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
(In thousands) |
|||||||||||||||
Reportable segment adjusted EBITDA: |
|||||||||||||||
Marcellus Shale |
$ |
4,722 |
$ |
4,264 |
$ |
23,214 |
$ |
15,940 |
|||||||
Williston Basin |
14,574 |
10,974 |
47,010 |
31,551 |
|||||||||||
Barnett Shale |
14,082 |
14,920 |
59,526 |
60,528 |
|||||||||||
Piceance Basin |
26,040 |
27,458 |
104,467 |
107,953 |
|||||||||||
Total reportable segment adjusted EBITDA |
59,418 |
57,616 |
234,217 |
215,972 |
|||||||||||
Allocated corporate expenses |
(6,139) |
(3,530) |
(23,772) |
(11,065) |
|||||||||||
Adjusted EBITDA |
$ |
53,279 |
$ |
54,086 |
$ |
210,445 |
$ |
204,907 |
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SOURCE
Marc Stratton, Senior Vice President and Treasurer, 832-608-6166, ir@summitmidstream.com